Fuel costs plunge – along with demand

Airfreight into Africa can be distilled into a few essential elements – the unrivalled position of SA as SADC’s air cargo hub, the cost of fuel impacting air cargo movement and the dominance of the “air freight cargo perennials,” emergency spare parts and perishables, over all other kinds of freight. Of Africa’s top three airports in terms of activity, according to the Airport International Council, holding the number one position is Johannesburg’s OR Tambo International Airport, with Cape Town International Airport at number three. Apart from Durban International Airport that holds position number eight, the remaining airfreight facilities aren’t even in our region. (Spots two, four and five are held by Egyptian airports, Morocco is number six and Kenya number seven; Lagos and Tunisia hold spots nine and ten.) “Last year’s challenge for airfreight was the cost of fuel. This year fuel is down but the economy is way down. A lot of air freight is spare parts going to the mines of DRC and Zambia, but with the drop in commodities prices there’s been a slowdown in mining activity,” said Hedley Monroe, a clearing and forwarding agent in Gauteng. Where air cargo is concerned, goods destined for regional consignees tend to hub through Johannesburg to be routed northward again on short-haul aircraft or sometimes by road. This past year, OR Tambo International has improved its security systems to thwart the theft problem that had prompted some airfreight companies to devise their own security measures. Most perishables going from SA to regional destinations are foodstuffs travelling by road not air. Spare parts are likely to be of European or US origin, flown to SA and then airfreighted north. The challenge then becomes speedy egress of goods from regional airports, where customs procedures require skilled local agents acting for airfreight firms to be present to assist. Airports seem to be growing aware of the business costs associated with customs delays. Angola’s Customs Department has announced a 30-day time cap for importers to declare, pay duties and remove incoming goods from customs facilities at Luanda’s international airport. The system is computerised, and documents can be sent and received via the internet. Rehabilitation of Mozambique’s main airfreight hub in Maputo is on schedule for 2010 completion. Aeroportos de Moçambique, which manages Maputo Airport, says the dowdy facility will be fully remodelled and technically modernised at a cost of $75 million. Also on schedule for its 2010 opening is Swaziland’s new international airport, which will include 1000 m2 of airfreight cargo storage capacity. Airfreight will face higher volumes with the end of the worldwide recession. But better business conditions will also bring greater demand for fuel, pushing up fuel prices and making airfreight a costly option once more.